ORIGINAL BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. APPLICATION FOR EMERGENCY EXEMPTION AUTHORITY

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1 i ORIGINAL BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. i C+>-- * l t _i ; - 1 r-.t i--i; :._ : 27 Application of 1 AEROVIAS NACIONALES DE COLOMBIA, S.A. (AVIANCA For an Exemption Pursuant to 49 U.S.C rjfi e / APPLICATION FOR EMERGENCY EXEMPTION AUTHORITY Communications with respect to this document should be addressed to: Robert D. Papkin Charles F. Donley II SQUIRE, SANDERS & DEMPSEY L.L.P Pennsylvania Avenue, N. W. P. 0. Box 407 Washington, DC Phone: ( Fax: ( rpapkin@,ssd.com cdonlev@,ssd.com Counsel to Aerovias Nacionales de Colombia, S.A. DATED:

2 BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of AEROVIAS NACIONALES DE COLOMBIA, S.A. (AVIANCA 1 For an Exemption Pursuant to 49 U.S.C APPLICATION FOR EMERGENCY EXEMPTION AUTHORITY Aerovias Nacionales de Colombia, S.A. ( AVIANCA pursuant to the provisions of Title 49 of the U.S. Code and Subpart D of the Procedural Regulations of the Department of Transportation (the Department, hereby requests an exemption from 49 U.S.C and from any other provisions of Title 49 and the Economic Regulations of the Department to the extent necessary to add Aruba as an intermediate point for its regularly-scheduled operations between Colombia and the U.S. Due to the urgent nature of this request as described below, AVIANCA will serve all parties on the attached service list via facsimile transmission, poll each one for its position, and promptly advise the Department of the results of the poll. AVIANCA requests that this authority be granted for at least a one (1 year period. AVIANCA intends to commence service via Aruba as an intermediate point as soon as the authority is granted. AVIANCA submits that it is fit, willing, and able to operate the service contemplated herein, and that this service is clearly consistent with the public interest.

3 As a result of the recent suspension of operations by Air Aruba (FQ, the Government of Aruba has requested that AVIANCA provide service in the U.S.-Aruba market, specifically on the Miami and New York routes previously served by FQ. The upcoming winter season is a peak time for travel to and tourism in Aruba, and the Government of Aruba has requested that AVIANCA commence service between Aruba and the U.S. points of Miami and New York by December 1,200O. AVIANCA has been advised that numerous passengers, either on their own or through tour operator packages, hold reservations for travel on FQ, and the Government of Aruba wants to be certain that those reservations will be honored. Although several U.S. carriers* currently offer service from various U.S. points to Aruba, the Government of Aruba anticipates that this capacity will not be sufficient to accommodate all of the passengers who hold tickets for travel on FQ. Moreover, the Government of Aruba does not wish to be totally dependent on carriers of a single country to provide all air service in this key market. The Aviation Transport Services Agreement (the Agreement currently in effect and governing the relationship between the U.S. and Colombia expressly provides for the authority requested herein. Annex II of the Agreement states that airlines may operate between the U.S. and Colombia via intermediate points in both directions. See Aviation Transport Services Agreement, October 24, 1956 (as amended, U.S. - Colom., Annex II, 1 American, TWA, United, CorQinental, Delta, and USAirways currently offer service in the U.S.- Aruba market. See OAG Flight Guide Worldwide, November

4 para. B, 14 U.S.T a. Addition of Aruba as an intermediate point, therefore, would be within the terms of the bilaterally-negotiated Agreement. AVIANCA wishes to emphasize that any operations conducted via the intermediate point Aruba would not be in addition to the frequencies it is authorized to operate pursuant to the Agreement, including the most recent modifications to the Agreement reached in March of this year. Accordingly, AVIANCA is proposing no additional flights to the United States, but simply will operate some of its currently authorized frequencies to Miami and New York via Aruba. In further support of its application, AVIANCA states as follows: 1. AVIANCA is a flag-carrier of Colombia and holds a Foreign Air Carrier Permit authorizing it to engage in scheduled and charter foreign air transportation of persons, property and mail between a point or points in Colombia and the coterminal points Miami, FL; New York, NY; and Los Angeles or San Francisco, CA via a number of intermediate points. See Order AVIANCA has successfully been operating U.S. - Colombia scheduled and charter combination service via these intermediate points for many years. AVIANCA respectfully requests that the Department incorporate herein to the extent necessary officially noticeable facts pursuant to 14 C.F.R (n.

5 3. AVIANCA is a citizen of Colombia. All of the principal management officials and key personnel, and all of the members of the Board of Directors of AVIANCA are citizens of Colombia. 4. AVIANCA requests authority to add Aruba as an intermediate point for its regularly-scheduled combination operations between Colombia and the U.S. AVIANCA does not anticipate any other change in its regularly-scheduled operations in terms of frequency or equipment. 5. As set out above, adding Aruba as an additional intermediate point is clearly within the scope of the bilateral agreement. AVIANCA has been licensed and is authorized by the Government of Colombia to conduct its scheduled operations between the U.S. and Colombia via Aruba. Grant of this authority is therefore in the public interest. 6. AVIANCA is subject to the safety and operational rules of the Government of Colombia. Colombia is a contracting party to the Convention on International Civil Aviation and observes all applicable ICAO standards. 7. Approval of Aruba as an additional intermediate point will not constitute a substantial change in AVIANCA s U.S.- Colombia operations and AVIANCA submits that the instant application raises no environmental or energy issues. All of AVIANCA s operations will continue to be conducted in accordance with applicable noise abatement requirements utilizing fuel-efficient Stage 3 aircraft. Approval of this application will not result in a near-term increase in fuel consumption of ten (10 million gallons or more. 4

6 AVIANCA, therefore, is fit, willing, and able to operate via the additional intermediate point as proposed herein. 8. In light of the urgent nature of this request, AVIANCA will serve this application on the parties listed on the attached service list via facsimile transmission and poll each carrier for its position. AVIANCA will promptly advise the Department of the results of this poll.

7 WHEREFORE, Aerovias Nacionales de Colombia, S.A. (AVIANCA respectfully requests that it be granted an exemption from 49. U.S.C. Sec to the extent necessary to add Aruba as an intermediate point in its scheduled and charter combination operations between Colombia and the U.S. In the alternative, AVIANCA requests such other, further, or different relief, as the Department may deem necessary and proper. Respectfully submitted, Robert D. Papkin Charles F. Donley II Squire, Sanders & Dempsey L.L.P Pennsylvania Avenue, N. W. P.O. Box 407 Washington, D.C Phone: ( Fax: ( rpapkin@,ssd.com cdonlev@,ssd.com Counsel for Aerovias Nacionales de Colombia, S.A. DATED: